Do you have to pay student loans during residency?

[Nanook]

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I posted this question elsewhere, but it didn't get no love. Here goes:

Does a physician have to pay back student loans during residency?

I thought residency was considered "continuing education" and was therefore a loan extension. But someone recently told me otherwise......

If you DO have to pay them back, how the heck do you do it? It seems like 800/mo or so would be most of one's salary.

 

[DocGibby]

Around 1/3 our salary if your numbers are correct. Expect to make somewhere around 30 -40 grand a year (mabey more mabey less). I don't have the expertise to give you the definitive answer you want, but your complaint of no love has persuaded me to reply anyway.

It's my understanding that interest begins to accumulate roughly 6-8 months after you get the degree. That 6-8 months is the intrest free grace period provided by the gov. Only after that time has expired does your loans start to accumulate interest. Furthermore, I know graduate students, now in their late 40's who still pay on their Stafford Loans (I assume this is the loan your most likely referring to). You pay the loan on your own time table. Longer it takes, the more you pay. I can't see Residency as "continuing ed" because you get paid for your efforts and therefore is more along the lines of learning on the job. There was a big story in or local paper just a few months ago on some doctors who still haven't paid back their loans (most of these guys were trying to screw the gov, though).

Anyway, this is my insight into the wonderful world of student loans.

 

[bri1856]

A friend of mine who recently graduated said that he could get a forebearance or extension on some/most of his education loans, but not all. He was still making some payments during residency. However, I do not know where his loans came from.

 

[Lee]

Well, bad news folks.

It used to be that you could get interest free or non-compounding interest deferrals on many student loans during residency. However, that changed a few years back, affecting the graduating classes of 1997 and above.

Now you can get a forebearance on all your loans, meaning you don't have to pay the loan, but the interest still collects and compounds in the meanwhile.

Compounding interest is not a good thing. If you can afford it during residency, start paying back your loans. At the least, pay the interest on your loans.

BTW, stay away from credit card debt during residency -- it's very easy to build-up. There are many residents that have 30K in credit card debt -- good luck paying that off quickly!

 

[Nanook]

Thanks for all the info!

Sort of makes me look a little closer at the military scholarships.....

I sure don't want to be paying loans back forever, and with a family to support, I don't think I can pay during residency.